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First Service Holding (HKSE:02107) ROC % : 6.97% (As of Dec. 2023)


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What is First Service Holding ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. First Service Holding's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 6.97%.

As of today (2024-05-24), First Service Holding's WACC % is 4.79%. First Service Holding's ROC % is 10.21% (calculated using TTM income statement data). First Service Holding generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.


First Service Holding ROC % Historical Data

The historical data trend for First Service Holding's ROC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

First Service Holding ROC % Chart

First Service Holding Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial 20.60 27.87 5.73 6.28 10.04

First Service Holding Semi-Annual Data
Dec17 Dec18 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only -14.84 7.80 5.55 13.75 6.97

First Service Holding ROC % Calculation

First Service Holding's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=92.989 * ( 1 - 20.83% )/( (711.451 + 755.664)/ 2 )
=73.6193913/733.5575
=10.04 %

where

Invested Capital(A: Dec. 2022 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1529.128 - 367.488 - ( 562.483 - max(0, 744.5 - 1194.689+562.483))
=711.451

Invested Capital(A: Dec. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1609.973 - 398.022 - ( 618.965 - max(0, 819.482 - 1275.769+618.965))
=755.664

First Service Holding's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

ROC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=65.526 * ( 1 - 22.8% )/( (696.139 + 755.664)/ 2 )
=50.586072/725.9015
=6.97 %

where

Invested Capital(Q: Jun. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1544.506 - 412.888 - ( 550.896 - max(0, 778.654 - 1214.133+550.896))
=696.139

Invested Capital(Q: Dec. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1609.973 - 398.022 - ( 618.965 - max(0, 819.482 - 1275.769+618.965))
=755.664

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


First Service Holding  (HKSE:02107) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, First Service Holding's WACC % is 4.79%. First Service Holding's ROC % is 10.21% (calculated using TTM income statement data). First Service Holding generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.


Be Aware

Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.


First Service Holding ROC % Related Terms

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First Service Holding (HKSE:02107) Business Description

Traded in Other Exchanges
N/A
Address
No. 1 Xiangheyuan Road, Dongzhimenwai, 3rd Floor, Building 10, Wanguocheng MOMA, Dongcheng District, Beijing, CHN, 100028
First Service Holding Ltd is a provider of property management services and green living solutions that cover the full property life cycle. The company's service portfolio is segregated into three business lines Property management services comprising cleaning, security, gardening and repair and maintenance; Green living solutions comprising energy operation services, green technology consulting services, systems installation services and sales of its AIRDINO systems; and Value-added services comprising parking space management services, communal area leasing services, sales assistance services, home living services, and preliminary planning and design consultancy.
Executives
Zhang Peng
Zhang Lei
Wang Yujuan
Yu Jinmei
Hao Feng Tou Zi You Xian Gong Si
Shi Jia Ji Tuan Kong Gu You Xian Gong Si
Printrust Company (singapore) Limited 2301 Trustee
Dinghui Equity Investment Management (tianjin) Company Limited 2201 Interest of corporation controlled by you
Tianjin Yongtai Fengze Investment Consulting Company Limited 2201 Interest of corporation controlled by you
Hangzhou Dinghui New Trend Equity Investment Partnership (limited Partnership) 2201 Interest of corporation controlled by you
Joy Riding Limited 2101 Beneficial owner
Joy Deep Limited 2101 Beneficial owner
Vistra Trust (hong Kong) Limited 2301 Trustee
View Max Limited 2101 Beneficial owner
Huang Shiying 2307 Founder of a discretionary trust who can infl

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